Glossary for Investors

Common Equity

The riskiest but highest-upside component of investment for a commercial real estate project. Since all other parties are entitled to payment first, common equity investments carry the highest attendant risk. However, common equity investments typically have uncapped upside on profits if the deal performs well.

For more on how common equity figures into the broader picture of commercial real estate finance, please see our longer-form blog post on the capital stack.

Full Glossary